WRONGFUL TERMINATION DEMAND LETTER

STATE OF ARKANSAS

[ATTORNEY/FIRM LETTERHEAD]

[Firm Name]
[Address Line 1]
[City, Arkansas ZIP]
Tel: [Phone Number]
Fax: [Fax Number]
[Attorney Email]
[Arkansas Supreme Court Bar ID Number]

VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND VIA EMAIL TO: [recipient_email]

[Date]

[Employer Contact Name]
[Title]
[Company Legal Name]
[Company Address]
[City, State ZIP]

Re: Wrongful Termination of [Client Full Name]
Former Position: [Job Title]
Dates of Employment: [Start Date] through [Termination Date]
CONFIDENTIAL SETTLEMENT COMMUNICATION PURSUANT TO ARK. R. EVID. 408

Dear [Mr./Ms./Mx. Last Name]:

This firm represents [Client Full Name] ("our client" or "[Mr./Ms./Mx. Client Last Name]") regarding [his/her/their] wrongful termination from employment with [Company Legal Name] ("[Company Short Name]" or "the Company") on or about [Termination Date]. Please direct all further communications regarding this matter to our office and refrain from any direct contact with our client.

We write to demand immediate action to remedy the unlawful termination of our client and to resolve this matter short of litigation. As detailed below, [Company Short Name] terminated our client in violation of Arkansas law, exposing the Company to substantial liability.

I. ARKANSAS EMPLOYMENT LAW FRAMEWORK

A. At-Will Employment Doctrine

Arkansas is a strong at-will employment state. The general rule is that employment for an indefinite term may be terminated by either party at any time, for any reason or no reason at all. M.B.M. Co. v. Counce, 268 Ark. 269, 596 S.W.2d 681 (1980).

However, Arkansas courts recognize limited exceptions to this doctrine when termination violates clearly established public policy.

B. Public Policy Exception

Arkansas narrowly recognizes the public policy exception to at-will employment. In Sterling Drug, Inc. v. Oxford, 294 Ark. 239, 743 S.W.2d 380 (1987), the Arkansas Supreme Court held that an employee may have a claim for wrongful termination when discharged for:

• Refusing to violate a criminal statute at the employer's direction
• Exercising a statutory right (such as filing a workers' compensation claim)
• Performing a statutory duty (such as jury service)

The Court has emphasized that the public policy must be "clearly mandated" by a statute or constitutional provision. Lucas v. Brown & Root, Inc., 736 F.2d 1202 (8th Cir. 1984) (applying Arkansas law).

Arkansas courts have been reluctant to expand the public policy exception beyond these narrow categories.

C. Implied Contract Exception

Arkansas recognizes that an implied contract may modify at-will employment, but courts apply this exception sparingly. Gladden v. Arkansas Children's Hospital, 292 Ark. 130, 728 S.W.2d 501 (1987).

To establish an implied contract, an employee must show:
- Specific assurances of job security beyond general handbook language
- Clear and unambiguous representations that employment would only be terminated for cause
- Mutual assent to the contract terms

General statements in employee handbooks typically do not create implied contracts under Arkansas law. The Arkansas Supreme Court has held that disclaimers in handbooks are generally effective in negating contractual intent.

D. No Good Faith Exception

Arkansas does NOT recognize the implied covenant of good faith and fair dealing as an exception to at-will employment. Griggs v. Coca-Cola Employees Credit Union, 324 Ark. 424, 909 S.W.2d 635 (1996).

Do not include a good faith/fair dealing claim in Arkansas wrongful termination cases.

II. ARKANSAS STATUTORY PROTECTIONS

A. Arkansas Civil Rights Act (ACRA)

Ark. Code Ann. Section 16-123-107 prohibits employment discrimination based on:
- Race or color
- Religion
- National origin
- Gender (including pregnancy)
- Disability

Employer Coverage: The ACRA applies to employers with nine (9) or more employees. Ark. Code Ann. Section 16-123-102(5).

Administrative Exhaustion: A charge must be filed with the EEOC. Arkansas does not have a state fair employment practices agency that processes discrimination charges.

Statute of Limitations: Civil action must be filed within one (1) year of the alleged discriminatory act or within 90 days of receiving a right-to-sue letter. Ark. Code Ann. Section 16-123-107(c)(1).

Remedies: Ark. Code Ann. Section 16-123-107(c)(2) provides:
- Back pay and benefits
- Compensatory damages
- Reinstatement or front pay
- Reasonable attorney's fees and costs

B. Workers' Compensation Retaliation

Ark. Code Ann. Section 11-9-107 provides:

"Any employer who willfully discriminates in regard to the hiring or tenure of work or any term or condition of work of any individual on account of such individual's claim for benefits, having a claim for benefits pending, or exercising any other right pursuant to this chapter shall be subject to civil suit by the employee..."

Remedies include:
- Reinstatement
- Back pay
- Compensatory damages
- Reasonable attorney's fees

This statutory protection provides the basis for a public policy exception claim under Sterling Drug.

C. Arkansas Whistle-Blower Act (Public Employees)

Ark. Code Ann. Section 21-1-601 et seq. protects public employees who report violations of law or waste of public funds.

Protections include:
- Prohibition on termination, demotion, or other adverse action
- Civil action for reinstatement, back pay, and attorney's fees
- Whistleblower hotline administered by Legislative Auditor

Note: This statute applies only to public employees. Private sector whistleblower claims must rely on the common law public policy exception or applicable federal whistleblower statutes.

D. Jury Duty Protection

Ark. Code Ann. Section 16-31-106 prohibits employers from threatening, intimidating, or discharging employees who serve on juries. Violations are punishable as contempt of court.

E. Voting Leave

Ark. Code Ann. Section 7-1-102 provides that employees are entitled to necessary time off to vote. Employers cannot deduct pay for voting leave.

F. Military Leave Protection

Ark. Code Ann. Section 12-62-413 protects employees who are members of the Arkansas National Guard from termination due to military service.

G. Arkansas Wage Claim Protections

Ark. Code Ann. Section 11-4-218 prohibits retaliation against employees who file wage complaints with the Department of Labor.

H. Domestic Violence Leave

Ark. Code Ann. Section 11-5-115 (effective for employers with 50+ employees) requires employers to provide leave for victims of domestic violence, sexual assault, or stalking.

III. FACTUAL BACKGROUND

A. Employment History and Performance

[Client Full Name] was employed by [Company Short Name] from [Start Date] through [Termination Date], a period of approximately [X years/months]. [He/She/They] most recently held the position of [Job Title] in the [Department], reporting to [Supervisor Name and Title].

Throughout [his/her/their] tenure, our client was a dedicated, high-performing employee:

• [Describe positive performance reviews, ratings, or commendations]
• [Describe any promotions, raises, or increased responsibilities]
• [Describe any awards, recognition, or special achievements]
• [Describe positive feedback from supervisors, clients, or colleagues]

At no time prior to [Date of First Adverse Action] did our client receive any disciplinary action or warning suggesting [his/her/their] employment was in jeopardy.

B. The Protected Activity / Triggering Event

On or about [Date], our client engaged in protected activity:

• [ ] Refused to violate a criminal statute at employer's direction
• [ ] Filed a workers' compensation claim under Ark. Code Ann. Section 11-9-101 et seq.
• [ ] Served on jury duty as required by law
• [ ] Reported illegal activity to appropriate authorities
• [ ] Complained about discrimination under the ACRA
• [ ] Exercised rights under FMLA, military leave, or other statutory protection
• [ ] Filed a wage complaint with the Department of Labor
• [ ] Other protected activity: [Describe]

Specifically, our client [provide detailed narrative of the protected activity, including dates, witnesses, and documentation].

C. Adverse Employment Actions and Termination

Following our client's protected activity, [Company Short Name] engaged in retaliatory conduct:

Timeline of Adverse Actions:

On [Termination Date], [Supervisor/HR Representative Name] informed our client that [his/her/their] employment was being terminated. The stated reason of [employer's stated reason] is pretextual, as evidenced by:

1. [Temporal proximity between protected activity and termination]
2. [Disparate treatment compared to similarly situated employees]
3. [Statements or evidence of retaliatory motive]
4. [Deviation from standard company policies or procedures]
5. [Inconsistent or shifting explanations for termination]

IV. LEGAL CLAIMS

A. Wrongful Termination in Violation of Public Policy

[Company Short Name]'s termination of our client violates Arkansas public policy. Under Sterling Drug, Inc. v. Oxford, 294 Ark. 239, 743 S.W.2d 380 (1987), terminating an employee for [describe protected activity] constitutes actionable wrongful discharge.

The public policy violated is clearly mandated by [cite specific statute or constitutional provision establishing the public policy, such as Ark. Code Ann. Section 11-9-107 for workers' compensation retaliation].

B. Violation of Arkansas Workers' Compensation Retaliation Statute

[If applicable:] Our client filed a workers' compensation claim on [Date] following a workplace injury sustained on [Date]. The Company's subsequent termination constitutes unlawful retaliation in violation of Ark. Code Ann. Section 11-9-107.

Under this statute, our client is entitled to:
- Reinstatement
- Back pay with interest
- Compensatory damages
- Reasonable attorney's fees

C. Breach of Implied Employment Contract

[If applicable - note this claim is difficult in Arkansas:] [Company Short Name]'s specific representations created an implied contract limiting termination to "for cause" situations.

Evidence of the implied contract includes:
- [Specific, clear, and unambiguous assurances of job security]
- [Written representations regarding termination procedures that go beyond general policy statements]
- [Clear mutual assent to contract terms]

[Company Short Name] breached this implied contract by terminating our client without cause.

Note: General handbook language is typically insufficient in Arkansas. Must show specific assurances beyond ordinary personnel policies.

D. Violation of Arkansas Civil Rights Act, Ark. Code Ann. Section 16-123-107

[If applicable:] Our client's termination constitutes unlawful discrimination based on [protected characteristic] in violation of the Arkansas Civil Rights Act.

[Describe the discriminatory conduct and evidence supporting the claim.]

Administrative Status: [Our client has filed / intends to file] a charge with the EEOC within the applicable filing deadline.

E. [Additional Federal Claims as Applicable]

[Insert additional claims such as Title VII, ADA, ADEA, FMLA, etc., if applicable]

V. DAMAGES

A. Statute of Limitations

• Wrongful Termination (Tort): Three (3) years under Ark. Code Ann. Section 16-56-105.
• Workers' Comp Retaliation: Implied two-year period based on tort analysis.
• ACRA Claims: One (1) year from the discriminatory act or 90 days from right-to-sue letter. Ark. Code Ann. Section 16-123-107(c)(1).
• Contract Claims: Five (5) years for written contracts (Ark. Code Ann. Section 16-56-111); three (3) years for oral contracts (Ark. Code Ann. Section 16-56-105).

This claim arises from termination on [Date], and therefore the general tort limitations period expires on [Date].

B. Economic Damages

1. Lost Wages (Back Pay)

2. Lost Benefits

3. Front Pay / Future Lost Earnings

C. Non-Economic Damages

Arkansas permits recovery for emotional distress in tort actions, including wrongful termination. Our client has suffered:

• [Describe emotional distress symptoms: anxiety, depression, humiliation]
• [Describe impact on physical health]
• [Describe impact on personal relationships]
• [Describe medical/psychological treatment sought]
• [Describe reputational harm]

Estimated non-economic damages: $[Amount]

D. Punitive Damages

Arkansas law permits punitive damages where the defendant's conduct demonstrates "willful and wanton" disregard of the rights of others. Ark. Code Ann. Section 16-55-206.

Arkansas Punitive Damages Caps (Ark. Code Ann. Section 16-55-208):

Exception: Caps do not apply for intentional misconduct where defendant knew or ought to have known that conduct would naturally and probably result in injury.

[Company Short Name]'s conduct meets the standard because:
- [Describe evidence of willful and wanton conduct]
- [Describe knowledge of wrongfulness]

Estimated punitive damages: $[Amount]

E. Attorney's Fees and Costs

Under the ACRA (Ark. Code Ann. Section 16-123-107(c)(2)), prevailing plaintiffs may recover reasonable attorney's fees.

Under Ark. Code Ann. Section 11-9-107, attorney's fees are available for workers' compensation retaliation claims.

Estimated attorney's fees through trial: $[Amount]

F. Mitigation of Damages

Arkansas requires wrongful termination plaintiffs to mitigate damages by seeking comparable employment. Our client has diligently sought comparable employment:
- [Describe job search efforts]
- [Describe applications submitted]
- [Describe interviews attended]
- [Describe any interim employment obtained]

G. Summary of Damages

VI. SETTLEMENT DEMAND

Based on the foregoing, we hereby demand that [Company Short Name] pay our client the sum of $[Settlement Demand Amount] in full and final settlement of all claims arising from [his/her/their] wrongful termination.

In addition to monetary compensation, we require:

• [ ] A neutral employment reference
• [ ] Expungement of negative information from personnel file
• [ ] Agreement not to contest unemployment benefits
• [ ] Mutual non-disparagement provisions
• [ ] Confidentiality provisions (subject to negotiation)
• [ ] [Other non-monetary terms]

VII. RESPONSE DEADLINE

Please respond to this demand in writing within twenty-one (21) calendar days of your receipt of this letter, no later than [Response Deadline Date].

If we do not receive a satisfactory response by that date, we are authorized and prepared to file suit in the Circuit Court of [County] County, Arkansas, without further notice.

VIII. PRESERVATION OF EVIDENCE

This letter serves as formal notice to implement a litigation hold and preserve all documents and electronically stored information relating to our client's employment and termination.

Failure to preserve evidence may result in spoliation sanctions under Arkansas law.

IX. CONFIDENTIALITY

This letter constitutes a confidential settlement communication protected under Arkansas Rule of Evidence 408 and may not be used as evidence in any proceeding except to enforce a settlement agreement.

We trust that [Company Short Name] will give this matter serious attention and respond in a timely manner. Our client prefers to resolve this matter without litigation but is fully prepared to pursue all available legal remedies.

Sincerely,

[Attorney Name]
[Title]
[Firm Name]
Arkansas Supreme Court Bar ID No. [Number]

Enclosures:
- [ ] Authorization to Represent
- [ ] [Supporting documentation]

cc: [Client Name] (via email)
[File]

ARKANSAS-SPECIFIC PRACTICE NOTES

• [ ] Strong At-Will State: Arkansas courts are generally employer-friendly. Public policy exception is narrow and requires violation of a specific statute or constitutional provision.

• [ ] NO Good Faith Exception: Arkansas explicitly does not recognize the implied covenant of good faith and fair dealing in employment. Do not include this claim.

• [ ] Implied Contract Claims Difficult: General handbook language is typically insufficient. Need specific, clear, and unambiguous assurances of job security showing mutual assent.

• [ ] ACRA Coverage: Only employers with 9+ employees are covered. Smaller employers may only face federal claims if they meet federal thresholds (15+ for Title VII).

• [ ] Short ACRA Limitations Period: Only ONE YEAR from discriminatory act. Calendar carefully.

• [ ] No State FEP Agency: File discrimination charges with EEOC. Arkansas does not have a state fair employment practices agency that investigates charges.

• [ ] Whistleblower Act Limited to Public Employees: Private sector whistleblower claims must use public policy exception or federal statutes.

• [ ] Workers' Comp Retaliation: Strong public policy basis under Sterling Drug. Ark. Code Ann. Section 11-9-107 specifically recognized as actionable.

• [ ] Punitive Damages Caps: Ark. Code Ann. Section 16-55-208 caps punitive damages based on defendant's net worth. Exception for intentional misconduct.

• [ ] Three-Year Tort SOL: General tort claims have three-year limitations period. Ark. Code Ann. Section 16-56-105.

• [ ] Venue: Circuit Court where defendant resides or where cause of action arose. Ark. Code Ann. Section 16-60-101.

• [ ] Constructive Discharge: Arkansas recognizes constructive discharge where employer deliberately makes working conditions intolerable.